The analysis can we viewed here.
Key findings:
People are retiring later
- Male average retirement age up 1.9 years since 1997 to 65.1 years
- Female average retirement age up 2.8 years since 1997 to 63.6 years
People are working longer
- Employment rate for people aged 50-64 has risen substantially in recent decades, while the gap between the employment rate of older and younger workers has narrowed
Tom Selby, senior analyst at AJ Bell, comments:
“Anyone who thinks retiring at 65 is a scary thought is in for a nasty shock. The rise in average retirement ages is only going to accelerate in the decades to come as the state pension age increases further and the number of people retiring with generous defined benefit entitlements falls away.
“We will also see more people working longer, either full-time or part-time, in order to supplement their retirement income. For some this won’t be a problem, but for those in more strenuous or physically demanding roles the thought of retiring later will be difficult to stomach. But the stark reality is that, if life expectancy keeps going up, many will be staring a retirement age of 70 or older square in the face.
“This isn’t inevitable, of course, and the more you can save into a pension early in your career the better chance you’ll have of stopping work at a time that suits you.”